Schwazze reaches debt restructuring agreement

Medicine Man Technologies, better known as Schwazze has entered into a Restructuring Support Agreement ("RSA") with an affiliate of Vireo Growth, which holds a majority of the Company's outstanding 13% senior secured notes due December 7, 2026, the holders of certain outstanding deferred cash seller notes and certain other parties.

The RSA sets forth a plan to restructure the operations and capital structure of the Company and its subsidiaries through a series of transactions, including, but not limited to, the sale of certain assets representing a majority of the total assets of the Company and its subsidiaries to a newly-formed entity to be majority-owned by Vireo, and the liquidation and winding down of the Company's remaining operations.

Any remaining assets of the Company not purchased in the Asset Sale would be subject to a wind down, and the remaining liabilities of, and equity interests in, the Company will receive the net proceeds (if any) from the wind down proceedings in accordance with their relative priorities under applicable law.

"Today's announcement represents a pivotal milestone in our journey to build a stronger, more agile organization," said Forrest Hoffmaster, Schwazze Chief Executive Officer. "This structure positions us to deliver exceptional value to our customers, employees, and partners. Vireo's support and commitment demonstrate strong confidence in our management team's strategic vision and our ability to capitalize on market consolidation opportunities. We are excited about the path forward and the significant potential this partnership creates."